CONGRESS DROPS FIRST FEDERAL AI BILL AND WANTS TO FREEZE EVERY STATE LAW FOR THREE YEARS House lawmakers have released a 269-page bipartisan draft of the Great American Artificial Intelligence Act, which would create the first comprehensive federal framework for governing AI in the United States and preempt all state-level AI regulations for at least three years. The bill was co-authored by Representatives Jay Obernolte, a Republican from California, and Lori Trahan, a Democrat from Massachusetts. It is organized into four sections covering frontier AI governance, workforce protections, cybersecurity, and research and international cooperation. The preemption clause is the most explosive provision. Any state law specifically regulating the development of AI models would be frozen for three years under Title I — effectively wiping out the patchwork of state AI rules that companies have been scrambling to comply with. Colorado, California, Texas, and others all have active AI legislation. This bill would pause all of it while federal standards are developed. For large frontier developers — defined as companies with more than $500 million in annual revenue that have trained a frontier model — the bill would impose binding development obligations. On workforce, employers would be required to disclose in WARN notices when AI was a substantial factor in a mass layoff. The bill also authorizes $100 million per year for a Center for AI Standards and Innovation. This is a discussion draft, not a final bill, and significant revisions are expected. But the political signal here is clear: Washington wants one rule for AI, not fifty. Keywords: Great American AI Act, federal AI legislation, AI preemption states, AI governance framework 2026